HLL looks up on positive monsoon outlook

DALAL STREET SPIKES

After a recent sell off, HLL witnessed bargain hunting on Tuesday in anticipation of a good monsoon.

HLL, which witnessed aggressive selling from all sections of investors, gained 1.65 per cent to close at Rs 129.70. The stock broke the Rs 130 barrier in intra day trades to hit a day's high of Rs 131.

Yesterday's gain was on the back of strong volumes of more than 1.1 crore shares. HLL has been a big loser on the bourses over the last few months.

From a high of Rs 215.55 on 2 January 2004, the stock plunged to a low of Rs 120.25 on 17 May 2004. Analysts said a positive monsoon outlook led to fresh buying at this counter.

A good monsoon means higher farm income and enhanced spending capacity for rural population were HLL is a dominant player.